The fund will award grants for dozens of volunteer projects, which could include schemes such as providing friendship and support to vulnerable adults, community services for disabled children and help for those living with HIV.

It will prioritise projects which work towards key aims such as improving adult social care and reducing health inequalities.

The scheme will be managed by a partnership including leading national third sector bodies, Attend, Community Service Volunteers (CSV) and Prime Timers working with Ecotec.

Care services minister Phil Hope said: “This new funding system will offer more scope for national projects in areas such as obesity, smoking and young people’s health. It will make our money work harder by opening up funding opportunities to more organisations.”

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